Paytm Payments Bank faces inquiry over foreign transactions: report

Photo credit: Paytm

Following a freeze from India’s central bank, Paytm Payments Bank has now found itself on the radar of Enforcement Directorate (ED), the Indian government agency that probes economic crimes and financial fraud.

The agency is probing foreign transactions by the bank, which is an affiliate of fintech major Paytm, according to a Reuters report. The article cited sources close to the company as well as those from the government.

The inquiry primarily focused on past transactions suspected to violate foreign exchange regulations, the report added, while the government source said that it is a “preliminary examination.”

In a filing to the country’s stock exchange, Paytm clarified that it “does not undertake Outward Foreign Remittance.”

Meanwhile, Paytm’s stock rout continues with the company losing 55% in value since end-January, which was when the central bank issued restrictions on the company’s banking affiliate.

At the time of writing, the stock was trading at US$3.9 per share.

Vijay Shekhar Sharma, Paytm’s founder and the affiliate bank’s non-executive chairman, has met Reserve Bank of India officials to seek respite. However, RBI governor Shaktikanta Das has made it clear that there is “hardly any room for review” on the decision.

Stockbroking firm Macquarie has since projected Paytm’s revenue to decrease by 60% to 65% between the 2025 fiscal year and FY 2026.

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